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2023 (2) TMI 697 - AT - Income TaxAddition u/s 68 - unsecured loans - assessee has failed to prove the creditworthiness of the loans givers/ providers - admission of additional evidence by assessee - HELD THAT:- No substantial adverse comment by the A.O. on the additional evidence filed by the assessee, in the remand report. We are agreement with the conclusion recorded by the Ld. CIT(A) that the AO was unjustified in making addition by drawing and adverse inference only on the ground that the five parties to whom the notices were issued u/s. 133(6) of the Act did not respond. From the copy of remand report the Ld. CIT(A) observed that the AO did not acknowledge the confirmation along with PAN number, ITR and bank account of the appellant which were very relevant regarding the identity, capacity of the creditors showing their creditworthiness and genuineness of the transaction of unsecured loans the AO simple rejecting the same without any basis and could not satisfied the requirement of valid invocation of provision of section 68 - CIT(A) also noted the loans were taken though banking channels and AO did not bring any adverse or positive material against the assessee to prove the same as otherwise. In view of foregoing the order of Ld. CIT(A) granting relief to the assessee deleting the additions also gets strong support from the judgment of Winstral Petro Chemicals P Ltd [2010 (5) TMI 65 - HIGH COURT OF DELHI] We are unable to see any valid reason to interfere with the findings arrived by the Ld. CIT(A) and therefore we uphold the same. Accordingly ground nos. 1 to 3 of revenue are dismissed for A.Y. 2010-11. Assessment order passed u/s. 153A - Necessity of approval u/s. 153D - application of assessee under Rule 27 of the ITAT Rules - Bogus creditors - Whether addition was based on incriminating material in the form of two balance sheets marked as real and final which was found during the course of search action? - HELD THAT:- Approval u/s. 153D of the Act was sought by the DCIT/Assessing Officer on 28.03.2013 from ACIT which was granted on the same date i.e.28.03.2013 by the ACIT to the Assessing Officer and said approval has been held by the Tribunal in the case of Subhash Dabas [2022 (3) TMI 643 - ITAT DELHI] and subsequent order [2021 (11) TMI 1140 - ITAT DELHI] for A.Y. 2009-10 and 2010-11 & 2011-12. as has been given without application of mind and thus the same is invalid bad in law and liable to be quashed and Tribunal has quashed the same. Therefore, the application of assesses under Rule 27 of the ITAT Rules is allowed. We, therefore quash the assessment order passed u/s. 153A for A.Y. 2010-11 in the case of present assessee and all additions are deleted. The ground raised by the assessee under Rule 27 of the ITAT Rules is accordingly allowed.
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